Credit Bureaus: The Myth

There are few mysterious beings feared by the masses like the Credit Bureaus. This isn't a laughing matter. The Credit Bureaus rank up there in things people fear with death, public speaking and Jabba the Hut's breath. For some reason the general feel about Credit Bureaus is that they are untouchable and one should never do anything to upset the Credit Bureau Gods. This section is meant to totally debunk this theory/fear. After reading this you will no longer have to be a slave of the unseen evil powers of the Credit Bureaus.

1. The Credit Bureaus are not an arm of the government.
2. The Credit Bureaus are for profit companies and just like any other business they are out to make money.
3. The Credit Bureaus simply collect data and then put this data in a report called a credit report.
4. The Credit Bureaus are unbiased to the information they collect. They don't care if your credit is good or bad, either way, they make money by keeping track of your data.
   
5. The Credit Bureaus make money by charging businesses and consumers to access credit reports.
6. The Credit Bureaus don't discern if information on a credit report is accurate or inaccurate. They simply report the information provided by a creditor.
7. The Credit Bureaus have rules and regulations they must follow as it pertains to consumer credit reports. These regulations are outlined by the Fair Credit Reporting Act (FCRA).
8. The Credit Bureaus are highly regulated by both state and government agencies ensuring fair and accurate reporting of data.

And the curtain has been pulled away.... The Credit Bureaus are just little old men pretending to be scary beings and we help them out by buying into the myth! Credit Bureaus simply report data, Thats it! You don't have to be scared of the Credit Bureaus. I repeat. You don't have to be scared of the Credit Bureaus. In the game of Credit, the Credit Bureaus are just the score keepers. You control your Credit, it doesn't control you.


For questions for the Credit Jedi send an email to: question@thecreditjedi.com

FreeCreditReport.com

Even on the moon of Endor you can't get away from the commercials, catchy jingles and spam emails for FreeCreditReport.com. They are everywhere! You can run but you can't hide from FreeCreditReport.com. Many people ask the Credit Jedi his thoughts on the product offered by FreeCreditReport.com. So here goes the first product review offered by the Credit Jedi.

FreeCreditReport.com is actually a website run by Experian. Experian is one of the three major Credit Bureaus producing credit reports for American consumers. In the opinion of the Credit Jedi, Experian is the best of the three credit bureaus. The data they compile is the most accurate and most trusted by consumers and businesses alike.

The offer from FreeCreditReport.com is freeish. It is actually a free-trial of a credit monitoring service offered by Experian. You do get access to your Experian credit report free of charge. All you need to do is enter your personal data, including credit card number and you will have instant access to your report. The catch is that the trial period is so short that many (or most) consumers don't remember to cancel in time. The credit card on file is then billed and the confusion/frustration begins.

PROS: You can access your credit report free of charge and never pay a dime if you cancel your order in time. Also, the service you sign up for is actually a very good service. The Credit Jedi highly recommends closely monitoring your credit report at all times and this service will do just that.

CONS: If you only want access to a free credit report you may end up paying for it if you don't cancel your free-trial in time. Although the service offered is a good service, there are other services that are less expensive for the same or better service.

SUGGESTION: The Credit Jedi is a fan of taking advantage of free-trial offers. Go ahead and check out your credit report at FreeCreditReport.com or subscribe to the monitoring service they offer. If you do not want to keep the monitoring service be SURE to follow the necessary steps (here) to cancel your service in time.

The Credit Jedi has spoken.

The Force = Knowledge

This Jedi is completely convinced that nearly all credit problems stem from a lack of credit education. Not all of us have been blessed with the opportunity to attend Jedi school in the Dagobah System from a small green Credit Master. Most of us were busy at school learning things that our teachers swear we'd use someday. I'm sure most of us dissect a frog or explore the mysteries of a quadratic function on a daily basis. Why would we ever have needed the knowledge of credit and credit reports or for that matter how to balance a check book???

I'm not implying that everyone must be a full blown master of the credit world (trust me, its not as glamorous as it sounds). However; I do think that a basic knowledge of credit, credit reports, credit scores and the effects of credit on your life is a must. So stick around and join me on a journey through the Credit Galaxy. Or at least check my blog from time to time and see funny video postings like this one (a fitting classic) "The Star Wars Kid".

For questions for the Credit Jedi send an email to: question@thecreditjedi.com

el Credit Reporto

Much to the dismay of many, a credit report is simply a report card for adults. Potential lenders or creditors will view this report card to determine whether they will lend money to you or not. But lets pause for a moment and be grateful that there aren't parent-teacher conferences for the credit/finance world.

So here is what your adult report card or credit report will be reporting about you:

• Your name or any other alias names you go by.
• Your birth date
• Your current address and a list of past addresses you have lived at.
• Your current employer and any past employers.

Account history (payment history, balances, age of accounts, credit limits, account status):

• Real Estate Accounts- Primary and secondary mortgages on your home
• Revolving Accounts: Accounts with an open-end term
• Installment Accounts: Accounts comprised of fixed terms with regular payments
• Collection Accounts: Accounts seriously past due
• Public Information: Bankruptcy, tax liens, foreclosures, judgements
• Inquiries: a list of creditors that viewed your credit report as part of the credit application process
• Creditor contact info: contact information for any creditor reporting information on your credit report.

So this would be the basic outline of your adult report card. The good news is that it is up to you what your report card says. The bad news is that it is up t o you what your report card says. Remember, there is no try, only do.

For a more official, less sarcastic definition of a credit report please click here or you can visit the credit bureaus directly: Experian, TransUnion, Equifax.

Dear Mr. Jedi..... What is credit?

First of all, my name is not Jedi, I am a Jedi (ie my way of being is Jedi like). If you are unfamiliar with this term please go to your local library and check out one of many of the "Star Wars" books. You'll find them between the "Lord of the Rings" trilogy and the instructions for D&D. Moving on......

The term "credit" in today's world is a one word description summing up your trustworthiness as it pertains to the repayment of a loan. Your "credit" is considered your past track record when it comes to your loans and financial records.

Did you pay your bills on time? Do you owe way more money than you are worth? Are bill collectors pounding on your door like the big bad wolf? If you think bankruptcy is just a term used to eliminate players in Monopoly, please leave this blog, there is no Jedi powerful enough to help you.

For a more official, less sarcastic definition of credit please click here.

Introduction

In a Galaxy Far Far Away......... OK, so here is the deal. I am the Credit Jedi. I have been called to protect the innocent from the evil dark side of the credit world. My pen (keyboard) is mightier than the almighty light saber. On my watch, you will be protected from tricky credit card companies, credit scams, outrageous interest rates and fees, ID Theft, mortgage fraud, nasty collection agencies, crooked car salesman and imperial troopers.

The real truth is, I make my living as a "Credit Education Expert" and I plan on sharing my expertise with anyone and everyone. I don't think it is fair that good people get taken advantage of or are treated like second class citizens based on their credit. My goal is to educate all those who want education about everything that is credit. So if this is you, jump in my virtual Millennium Falcon and we'll punch it into warp speed.

Oh, and before you ask, "yes, I have a robot and a tall fury side kick." They will be joining us in future posts.

For questions for the Credit Jedi send an email to: question@thecreditjedi.com